Experian can help you predict and manage fraud to minimize impact
Protect your business against fraudulent activity
It is estimated that one in four people is a victim of fraud, while, globally,
merchants are expected to incur around $325 billion in fraud costs and losses every
year. Fraud is a huge issue that is on the rise. Economic decline makes the prospect
of committing fraud more attractive, which is fuelled by increasing numbers of online
transactions that do not need to be conducted face to face. There is a constant, ongoing
battle between fraudsters and legitimate businesses, particularly in the area of digital
There is a high social and financial cost to fraud that impacts both organizations
and individuals. Hundreds of fraudulent techniques exist, which include anything from
theft of a credit or debit card, tax evasion, claims fraud, advertising goods and
services that don’t exist, falsifying information, or stealing another’s
identity for gain. How do you assess the risk of fraud effectively to ensure you are
protecting your customers or yourself?
Prioritize your fraud investigation
There are a number of challenges involved in assessing the risk of fraud. For starters,
how do you automate the detection process so that fraud is flagged correctly? How
do you ensure that your fraud-detection team is concentrating on the most important
areas? How do you decrease “false positives,” where time is wasted investigating
cases that are not really fraudulent at all? Fraud investigation is costly and time-consuming,
so it’s essential to be able to prioritize high-value cases in order to use
your resources effectively. In many countries, legislation must be considered as it
restricts organizations from declining customer applications on suspicion of fraud
without conducting an investigation.
In addition to this, your customers will want instant decisions about their applications
or real-time transactions. Unfortunately, there is a trade-off between speed and fraud
prevention. Your organization will need to make fast decisions that are unobtrusive
to the customer and don’t compromise company policies or fraud protection. Turning
down a customer on suspicion of fraud could lose you revenue now and in the future
from someone who potentially could be a long-term customer. Monitoring fraud techniques
is the only way to stay one step ahead by preventing and detecting fraud.
Detect cases of fraud – we support your fraud detection
systems throughout the customer journey, from knowing the customer’s identity,
through accepting his or her application, to growing the business by cross-selling
to customers with authenticated identities.
Automate fraud risk assessment – our systems flag the possibility
of fraud. For example: a woman claims an annual income of $97k when she applies for
a mortgage, but in a previous application, she stated that she was earning half of
that. We can highlight this and other suspicious behavior, enabling the investigation
team to concentrate on these high-risk cases and allowing genuine customers to receive
Predict the likelihood of fraud – our analytics can help
you evaluate the risk of fraud to support prioritization of cases and effective use
of operational resources.
Reduce many types of fraud – we concentrate on reducing
application fraud, retail and ecommerce fraud, money laundering, false-work-history
fraud, and, in some regions, open-account fraud.
Share information – in a growing number of countries, we
have set up fraud detection schemes shared by a number of organizations in a sector.
These organizations see the fight against fraud as a battle that requires cooperation
with their competitors.